© 2013 MoneyGram. Proprietary and Confidential. August 2014 NCP Child Support Payment Overview

2 © 2013 MoneyGram. Proprietary and Confidential. Agenda Overview of the Unbanked/Underbanked Overview of MoneyGram/Xerox Offering NCP Experience Support

3 © 2013 MoneyGram. Proprietary and Confidential. Not all customers have the means or desire to pay bills electronically In fact, 1 in 4 U.S. adults, or 61M, are unbanked or underbanked cash-preferred customers Others are banked but just prefer to pay with cash, like the 18.7% of U.S. households that have both checking and savings accounts and have used in the last year an Alternative Financial Services (AFS) product In person cash payments bridge the gap by turning cash payments into electronic transactions You reap the benefits of an electronic solution while your customers get to pay via their preferred cash method Why Provide In-Person Cash Payments? 2011 FDIC National Survey of Unbanked and Underbanked and 2013 U.S. Census Bureau

4 © 2013 MoneyGram. Proprietary and Confidential. Banking Status of U.S. Households 34M unbanked and underbanked U.S. households 29.3% of households do not have a savings account About 69% of U.S. households have both checking and savings accounts 25% of households have used at least one AFS product in the last year 12% of all U.S. households used an AFS product in the last 30 days, including 4 in 10 unbanked and underbanked households 2011 FDIC National Survey of Unbanked and Underbanked

5 © 2013 MoneyGram. Proprietary and Confidential. Motivators for Paying with Cash Unbanked – no bank account Underbanked – “financially challenged" or just prefer to use AFS Banked but prefer cash for various reasons: – Last-minute payer – Late/Overdue payer – Consequence avoider (e.g. repossession, utility shut-off) – Prioritizing bills based on funds available/budgeting technique – Want payment receipt/confirmation – Don’t trust mail or online payments – Want/need untraceable transaction: Maintain privacy/anonymity Shared bank accounts/living situations

6 © 2013 MoneyGram. Proprietary and Confidential. Unbanked/Underbanked Consumer Profile The unbanked and underbanked represent: – 55.3% of black households – 48.7 % of Hispanics households – 41.3 % of American Indian households (vs percent of white households and 19.3 percent Asian households) 2 in 5 households have income below $30,000 31% of households under age 24 are underbanked Nearly 18% of unmarried family households are unbanked and close to 30% are underbanked M INORITIES A RE M AINSTREAM We tend to think of the unbanked and underbanked as a minority, when in fact they are mainstream – making up a quarter of the U.S. population and growing. Center for Financial Services Innovation 2011 FDIC National Survey of Unbanked and Underbanked

7 © 2013 MoneyGram. Proprietary and Confidential. Unbanked Rates by State Data Sources: 2011 FDIC National Survey of Unbanked and Underbanked Households September 2012

8 © 2013 MoneyGram. Proprietary and Confidential. Underbanked Rates by State Data Sources: 2011 FDIC National Survey of Unbanked and Underbanked Households September 2012

9 © 2013 MoneyGram. Proprietary and Confidential. Cash is King with the Underbanked Not surprisingly, cash is the dominant method of payment among the underbanked W ALK - IN P AYMENTS M ARKET S IZE Estimated 236 million walk-in payments annually, representing $28 billion $710 million in revenue to industry third-party processors 2012 Mercator Advisory Group, Third-Party Walk-In Bill-Payments in the United States Center for Financial Services Innovation

10 © 2013 MoneyGram. Proprietary and Confidential. Child Support Overview This service is FREE to the states. MoneyGram and Xerox ExpertPay are partnering to provide state child support payments at all of MoneyGram’s 39,000 retail walk-in payment locations. MoneyGram will send cash (1) child support payments from NCPs via secure file transfer electronically to Xerox ExpertPay daily along with the funding. Xerox ExpertPay will format the payments in the proper NACHA format for a Direct Payer and send to the SDU as a CCD+ file with data and funds. The SDU will receive the ExpertPay CCD+ file the same way that it receives online obligor payments today from ExpertPay. There is no charge to the state for the MoneyGram service or for access to PaymentTracker. Note (1) MoneyGram accepts PIN debit cards same as cash at all Walmart, Alberton’s and certain 7-Eleven locations.

11 © 2013 MoneyGram. Proprietary and Confidential. Why Choose MoneyGram? Guaranteed cash payments Trusted bill payment provider for over 20 years 12,000 bill payment alliances Leading financial services provider for more than 65 years More than 39,000 U.S. payment locations Responsive account manager dedicated to your needs Real-time integration, payment notification and transaction management 24/7/365 Multilingual Customer Support

12 Customer/NCP Experience

13 © 2013 MoneyGram. Proprietary and Confidential. Child Support Payment Send Transaction Flow Associate Associate reviews information to ensure that all fields are complete Customer (NCP) enters Moneygram Agent Location Sender (typically same as NCP) Complete Blue Form NCP completes MGI Blue bill payment form (1) Agent enters customer information in MGI Delta Works Customer Lookup Associate Confirms Receive Code (2) for Child Support State Associate searches, selects appropriate receive code based on the state that the child support payment is going to. Associate enters name, address, phone number, PAR ID/Case ID and amount (1) Amount & Account Number All payments received by MGI’s system in real-time & forwarded to ExpertPay daily Associate provides NCP with a printed receipt / disclosure MG Receipt Confirmation Payment Associate confirms transactions & collects payment MGI System Notes: 1.MGI only requires the sender/NCP to enter their information (name address, phone number) once. The next time they return to make a payment they only need to provide their name or phone number to the MGI agent. 2.If NCP does not know the MGI receive code the agent can look it up via the agent terminal. ExpertPay Payment detail received from MGI in daily batch file State SDU Obligor payment sent to SDU as CCD+ in NACHA file format with funds & data NACHA

14 © 2013 MoneyGram. Proprietary and Confidential. MoneyGram Blue Form John Smith Main Street Little Rock AR John Smith State Child Support Agency Name Receive code identifies appropriate State child support agency, which can also be easily found by MGI agent with a keyword search NCP’s participant ID or case ID depending on requirement of SDU Sender (NCP) name, address & phone number

15 © 2013 MoneyGram. Proprietary and Confidential. Walmart Receipt - Sample

16 © 2013 MoneyGram. Proprietary and Confidential. CVS Receipt - Sample

17 Customer/NCP & State Agency Support

18 © 2013 MoneyGram. Proprietary and Confidential. Consumer/NCP Support  Receipt will direct consumer to call MoneyGram for any questions regarding their payment  MoneyGram can also print a static message from the State Child Support agency on the MoneyGram receipt  24x7 customer care  Multilingual with 23 languages supported  Assistance with ad-hoc issues

19 © 2013 MoneyGram. Proprietary and Confidential. State Child Support Agency Support MoneyGram provides support to Xerox ExpertPay, SDU, and State Child Support agencies for: – Researching past payments questions – Setting up new users for access to PaymentTracker – Payment Tracker Training – Marketing materials MoneyGram Support Team – David Maddox – Regional Sales Manager – Melissa Gaddy – Regional Account Manager – Tammy Meyers - Account Relations Manager

20 © 2013 MoneyGram. Proprietary and Confidential. Payment Tracker for State Child Support Agency Web-based industry leading transaction management tool – Patent-pending Strong security with configurable account masking Customizable ad-hoc search reports Near real-time payment notification 24/7/365 Payment Tracker is provided at no cost to the States

21 © 2013 MoneyGram. Proprietary and Confidential. PaymentTracker – Daily Report

22 © 2013 MoneyGram. Proprietary and Confidential. PaymentTracker – Ad Hoc Report

23 © 2013 MoneyGram. Proprietary and Confidential. PaymentTracker – Detail Report

24 © 2013 MoneyGram. Proprietary and Confidential. PaymentTracker – Transaction Detail

25 © 2013 MoneyGram. Proprietary and Confidential. MoneyGram Contacts David Maddox Regional Sales Manager –Payments Office Cell